Paraguay’s $500.6 Million Debt Offering

Cleary Gottlieb represented Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC, as initial purchasers, in the Republic of Paraguay’s (Paraguay) issuance of $500.6 million 3.849% bonds due 2033, which have been admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The offering launched and priced on January 20, 2022, and closed on January 28, 2022.

The bond offering was made concurrent with an offer to purchase for cash certain outstanding bonds of Paraguay, which launched and expired on January 20, 2022, and settled on January 26, 2022. Cleary represented Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC, as joint dealer managers, for the offer to purchase. This transaction also constituted the second liability management exercise by Paraguay since the enactment of Law No. 6638/20 in November 2020.

Paraguay used a portion of the net proceeds of the sale of the bonds to pay the purchase price of outstanding bonds accepted in the offer to purchase. The remaining proceeds will be applied to partially finance the implementation of measures designed to support economic activity, employment, and protect vulnerable sectors, including COVID-19-related government response through Paraguay’s broad social safety net and to general purposes of the government, including financial investment and the refinancing, repurchase, or retiring of domestic and external indebtedness.